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Board Dynamics and Financial Reporting Quality in Nigeria

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  • Victor Chiedu OBA

    (Nasarawa, State University, Nigeria)

Abstract

The code of corporate Governance code (2011) in Nigeria was ushered with a target to enhance the monitoring function of board of directors and audit committees. This study investigates the ability of certain board dynamics to influence management attitude in relation to reporting quality in Nigerian listed firms. Accruals, a proxy for financial reporting quality is estimated using the Dechow and Dichev model. Using a panel data obtained from annual reports of 69 listed Nigerian firms from 2008 to 2012, the study documents that board independence, board tenure, gender diversity and directors’ shareholding are significant predictors of financial reporting credibility in Nigeria. The board size was found to have a neutral effect on financial reporting quality. This study extends existing literature by contributing to knowledge on how board traits influence financial reporting quality in emerging economies such as Nigeria.

Suggested Citation

  • Victor Chiedu OBA, 2014. "Board Dynamics and Financial Reporting Quality in Nigeria," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 15(2), pages 226-236, May.
    • Handle: RePEc:rom:rmcimn:v:15:y:2014:i:2:p:226-236
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    More about this item

    Keywords

    Financial Reporting Quality; Board of Directors; Earnings Management; Corporate Governance.;
    All these keywords.

    JEL classification:

    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting
    • G3 - Financial Economics - - Corporate Finance and Governance

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